An official report has been circulated that Japanese interests
have been negotiating for, and are about to conclude the purchase
of a large company in Timor, the owner of which is Celestino da
Silva. In view of this report instructions have been given to His
Britannic Majesty's Ambassador at Lisbon [1] to point out to the
Portuguese Government what a bad impression this transaction would
make on His Majesty's Government in the United Kingdom. The
Foreign Office is of opinion that it might be useful if the
Commonwealth Government were to associate itself with the
representations which the Ambassador is making, preferably at the
same time as he makes them, should that be the wish of the
Commonwealth Government and provided that it is able to decide
before the Ambassador acts. He will probably approach the
Portuguese Government on 27th April.

HODGSON